The Stock Exchange is a regulated market on which transferable securities are publicly-traded. The Stock Exchange comprises :  

• The Central Market : a centralised, order-driven market.
• The Block-Trade Market : an Over-The-Counter market, where large-sized blocks of securities are traded under price conditions derived from the main market. 

Transactions on the block-trade market must :  

• Be for a total number of securities at least equal to the Minimum Block Size , as defined by the Casablanca Stock Exchange for each security and with reference to historical trading volumes.

• Be executed at a price within the price range derived from the order book (Central Market) for securities traded on a continuous basis or determined on the basis of the last opening price for securities traded by auction or by multi-auction .

The “General Rules of the Casablanca Stock Exchange” specify the rules governing market operations. The General Rules are published by order of the Ministry of Finance and Privatisation and are enforceable against third parties.

In accordance with the new provisions of law N° 52-01, since 26 April 2004, five quotation markets are offered by the Casablanca Stock Exchange :  

• Three Equity Markets.
  
• One Bond Market.;
  
• One Funds Market (in the process of finalisation).

     
    Equity Markets

    Bond Market

    Funds Market

The electronic quote-driven trading system (NSC) is an automated platform for the management of stock-market trading sessions. It enables the automatic routing of stock-market orders and the completion of transactions according to predefined market rules.

All securities quoted on the Casablanca Stock Exchange are traded by means of the electronic trading system using trading terminals supplied to brokerage firms. Stock-market orders entered by dealing agents are automatically ranked by price limit and by the chronological order by which they have been entered into the order book. Their execution is subject to two rules of priority :  

1. First, price.
2. Then, time.

 Two orders on the same side and at the same price limit will be executed according to the order in which they were submitted.

• Least liquid securities are quoted by auction;
• Securities with average liquidity are quoted by multi-auction;
• Most liquid securities are quoted on a continuous basis.

The choice of quotation method for each security is made by the Casablanca Stock Exchange.

The share price retained for the calculation of indices and the dissemination of information is the last share price dealt, or the adjusted price in the case of corporate actions.

• Quotation by auction

  At the pre-open:

During this phase, orders submitted by brokerage firms to the electronic quote-driven trading system are automatically registered in the order book without giving rise to transactions.

At the open:

At the open, the electronic quote-driven trading system attempts to match all orders submitted in the order book for each security. If a match occurs, an opening price is displayed.

• Quotation by multi-auction

It is the same quotation method as for by auction. The only difference is that the multi-auction may have three opens, which can lead to three or more prices per trading session.

• Quotation on a continuous basis

Pre-open:

During this phase, orders submitted by brokerage firms to the electronic quote-driven trading system are automatically registered in the order book without giving rise to transactions.

Open:

At the open, the electronic quote-driven trading system attempts to match all orders submitted in the order book for each security. If a match occurs, an opening price is displayed.

Session:

After the open and until the pre-close, any order introduced may immediately trigger one or several transactions, if the order book so allows.

Pre-close:

During the pre-close period, orders are entered into the electronic quote-driven trading system and build up on the order book without any transaction occurring.

Close:

At the close, the process gets underway to match all orders for each security and, if a match occurs, a closing price is displayed.

Trading hours for securities quoted on the electronic quote-driven trading system are fixed from Monday to Friday as follows :

 

Securities are quoted by group as follows :

Group 1 : Shares quoted on a continuous basis.
Group 3 : Shares quoted by multi-auction.
Group 6, 07 et 08 : Bonds quoted by auction.
Group 11 : Secondary lines of Group 1 securities quoted on a continuous basis.
Group 13 : Secondary lines of Group 3 securities quoted on a continuous basis.

The Casablanca Stock Exchange monitors transactions on a daily basis. It is entitled to temporarily suspend transactions on any stock or to limit the fluctuations of share prices, if it deems it necessary in the interests of the market.

The Casablanca Stock Exchange applies a standard time limit of T+ 3 in line with international standards. This can be defined as the period of time between the transaction date and the date of theoretical settlement.

The Dahir providing law N° 1-93-211 also provided for the adoption of a system guaranteeing brokerage firms the clearing of transactions executed on the main market within a certain time period and whatever the situation of their counterparties (shortage of securities or cash). For this purpose, each brokerage firm builds up margin with the Casablanca Stock Exchange earmarked to cover unsettled net positions held by the brokerage firm relating to transactions on the Central Market.